KIIT University 2008 micro-economics - exam paper

c. Monopoly and Monopolistic Competition
d. Perfect Competition and Monopoly.
e. Perfect Competition and Oligopoly.




54. A Monopolistic Competitor’s demand curve is:
a. is the identical as the market demand curve
b. is elastic
c. is inelastic
d. is perfectly inelastic
e. is perfectly elastic

55. If an oligopolist in a market characterized by rivalry:
a. lowers its price, then market competitors will raise their prices
b. raises its price, then market competitors will attempt to persuade it to reverse this price increase
c. lowers its price, then market competitors will tend to keep their prices the identical.
d. raises its price, then market competitors will tend to match this price rise.
e. lowers its price, then market competitors will tend to match this price drop.

Monopolistic Competition & Oligoply
Name___________________________________

MULTIPLE option. select the 1 option that best completes the statement or answers the ques..
1)

Brand loyalty ____ while brand identity ____.

1)

_______
A)

raises demand; decreases the price elasticity of demand
B)

lowers product prices; increases product prices
C)

decreases the price elasticity of demand; raises demand
D)

decreases demand; increases the price elasticity of demand
E)

increases the price elasticity of demand; decreases demand

2)

A centralized cartel will ________, while a market-sharing cartel will ________.

2)

_______
A)

set geographical boundaries for the market; combine marginal costs and act as a monopolist
B)

combine marginal costs and act as a monopolist; compete by undercutting prices
C)

compete by undercutting prices; set geographical boundaries for the market
D)

combine marginal costs and act as a monopolist; set geographical boundaries for the market
E)

compete by undercutting prices; combine marginal costs and act as a monopolist

3)

Which of the subsequent market structures are likely to set prices that are greater than marginal cost?

I. monopoly
II. oligopoly
III. monopolistic competition
IV. perfect competition

Earning:   Approval pending.